Stellar (XLM) has surpassed SUI (SUI) in terms of market capitalization following a more than 11% increase in just 24 hours. XLM, now positioned as the 12th largest cryptocurrency with a market cap of $14.21 billion, was trading at a weekly peak of $0.467 as of the latest update.
XLM appears to be gearing up for additional gains as it shows a positive outlook on its shorter timeframe chart, hinting at a potential surge towards a multi-week high of $0.52 in the near future.
XLM Set on Further Growth
Stellar has formed a double bottom pattern on its four-hour chart, indicating a forthcoming bullish momentum. Moreover, it has successfully surpassed a crucial resistance level at the pattern’s neckline, suggesting a robust uptrend.
The next price target for XLM is set at the 1.618 Fibonacci extension level ($0.52), which would propel XLM to achieve monthly highs.
The surge in buying volumes, amounting to $154 million, is evident through the volume histogram bars. Additionally, the Relative Strength Index (RSI) reaching 71 indicates that XLM might be approaching overbought conditions.
The Moving Average Convergence Divergence (MACD) indicator further supports the bullish sentiment, with the MACD line trending positively, illustrating the dominance of the bulls at present.
Prolonged Bullish Momentum Could Disrupt XLM’s Rally
The recent upsurge in Stellar’s price resulted in the liquidation of over $1.5 million in short positions. This scenario led to a shift in demand towards long positions, evident from the positive funding rates reported by Coinglass.
XLM’s liquidation heatmap, based on a 24-hour timeframe, highlights the effect of short liquidations on price movement. While there are liquidation zones below the current price that could exert downward pressure on XLM, the critical zone to monitor is at $0.40 – $0.41.
In the event of an unforeseen drop, the concentration of liquidation levels in this range poses a risk to long traders, potentially triggering a significant downtrend once these positions start closing.
Is XLM Poised to Break into the Top Ten Cryptocurrencies?
With the recent surge in market capitalization, Stellar (XLM) is edging closer to surpassing Avalanche (AVAX), which holds a market cap of $15.34 billion. To break into the top ten cryptocurrencies, XLM would need to increase its market cap by over $5 billion to surpass Tron (TRX).
The possibility of achieving this milestone is plausible since XLM’s market cap soared from approximately $9.8 billion to $14 billion within the first five days of 2025. However, sustaining this upward trajectory will be crucial for Stellar’s advancement in the cryptocurrency rankings.